Blockbusters coming soon: Cinema union

The National Film Development Agency (BP2N) has announced that the government has decided not to impose royalty taxes on imported movies for the next two years.

The decision comes as a part of an agreement between the Indonesian government and film importers, and is hoped will lead to a return of Hollywood films at Indonesian cinemas after several months of hiatus.

Local importers, which have exclusive rights to import Hollywood blockbusters, suspended import activities in January while they settled tax cases in court worth up to Rp 300 billion (US$35.09 million) in unpaid royalty fees and penalties.

Indonesian Union of Cinema Owners (GPBSI) chairman Djonny Sjafrudin welcomed the decision, adding that it would help rejuvenate Indonesia’s cinema industry by meeting the local demand for Hollywood movies.